chaoter 2 - double entry book-keeping - part a Flashcards
1
Q
definition of:
double entry book-keeping
A
the process of making a debut entry and a credit entry for each transaction
2
Q
definition of:
drawings
A
any value taken from the business by the owner of business
3
Q
definition of:
balance
A
a balance on a ledger account is the difference between the debit side and the credit side
4
Q
definition of:
carriage
A
the cost of transporting goods
5
Q
definition of:
carriage inwards
A
cost of bringing goods to the business
6
Q
definition of:
carriage outwards
A
cost of delivering the goods to the customer
7
Q
explain how to balance a ledger account
A
add up each side of the account and find the difference between them before drawing total like each and before writing the word ‘balance’
8
Q
purchases acc
A
only goods bought for resale are entered in purchases acc
